Runway Growth Credit enters into $100 million five-year revolver

By Sarah Lizee

Olympia, Wash., June 6 – Runway Growth Credit Fund Inc. entered into a credit agreement on May 31 with KeyBank NA as administrative agent, providing for a $100 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings subject to availability under a borrowing base.

There is a $100 million accordion feature.

Interest is Libor plus 250 basis points to 300 bps, depending on use and other factors.

There is a 50 bps commitment fee and a well as a minimum earnings fee of 3% that will be payable annually in arrears, starting on May 31, 2021, on the average unused commitments below 60% of the aggregate commitments during the preceding 12-month period.

The availability period expires on May 31, 2022 and is followed by a two-year amortization period. The stated maturity date is May 31, 2024.

Covenants include maintenance of a specified tangible net worth, an asset coverage ratio, an interest coverage ratio and a minimum liquidity amount, among others.

KeyBank is the syndication agent, and CIBC Bank USA is the documentation agent.

Also on May 31, the company terminated its revolving loan agreement with CIBC Bank USA.

Chicago-based Runway Growth Credit Fund operates as a venture capital firm.

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